The eSports industry is enjoying tremendous growth right now as gaming competitions take center stage at live events throughout the world. Whether it is traditional sports-based games or team fight strategy games, all manner of eSports are enjoying great popularity and many players and entrepreneurs are entering this fun and lucrative industry.
However, it is important to keep in mind that along with the high prize pots and enjoyable nature of eSports come a broad range of risks, especially when you factor in the online nature of games and travel to competitions. Proper eSports insurance coverage is vital for those operating in the industry. Here is a look at some of the most commonly asked questions about eSports insurance.
Who Needs eSports Insurance?
All organizations and professionals that operate within the eSports industry need dedicated eSports insurance that addresses their unique risks.
Professional gamers need insurance that covers personal accidents and the type of injuries they can sustain while performing their work, such as repetitive motion injuries. Teams need financial protection for the expensive equipment they use as well as the costs of hiring eSports professionals. Insurance can also protect them from financial losses related to third-party lawsuits and cybercrimes.
Event and team sponsors need insurance to protect against the risk of lawsuits related to contract disputes and discrimination as well as cybercrimes. Tournament organizers need insurance that addresses financial risks such as event cancellation, property damage, third-party lawsuits, cybercrimes and competitor lawsuits.
Why Do Teams And Players Need Esports Insurance?
eSports insurance allows professional gamers to protect their future earnings by offering financial protection from gaming-related injuries that compromise their ability to compete. In addition, teams that have the right insurance in place may be taken more seriously by sponsors and event organizers. Insurance can also cover the cost of the expensive equipment used by teams and players if it is stolen or damaged.
What Does eSport General Liability Insurance Cover?
General liability is a type of insurance that can cover many common types of damages to other parties, such as bodily injury, property damage, legal defense and judgments, medical payments, and personal and advertising injury.
For example, if an employee spills water across your gaming stations and seriously damages them, it could pay for the cost of repairing or replacing them. It could also cover the costs of issuing guests refunds if an employee accidentally resets a gaming station during a major game, causing the crowd to miss a pivotal moment. If a customer trips over a badly placed cord and injures themselves, it could pay for their medical expenses as well as legal fees if they decide to sue you.
What Specific Policies Do eSports Operators Need?
Insurance companies like MFE Insurance that have experience in the eSports field will tailor a policy to suit the needs of your specific eSports operation. Here is a brief look at some of the specific policies that many eSports operators need:
General Liability Insurance: This can cover claims of property damage or bodily injury made by third parties.
Cyber Liability Insurance: The computerized nature of the eSports industry means there are significant cybercrime risks. This insurance provides important coverage in the event of a data breach that involves personal information getting into the wrong hands and covers costs related to restoring systems following breaches, lost income, and notifying third parties that were involved in the breach.
Event Liability Insurance: Competitions are a major focus of the eSports industry, and organizers need event liability insurance to provide protection from financial losses. Another useful type of policy is event cancellation insurance, which offers financial protection if an event needs to be closed for reasons beyond the control of the organizer.
Equipment Breakdown Insurance: eSports businesses depend on many pieces of electronic equipment and other devices operating seamlessly. Equipment breakdown insurance can help ensure that your eSports organization or team does not lose money if consoles, controllers or other electronic equipment breaks down.
How Much Can eSport Franchises Expect To Pay For General Liability Insurance?
General liability insurance is generally a good value considering the amount of protection it provides, particularly in the case of lawsuits. Several factors are used to determine the price of your policy, such as your location, number of employees, and type of operation.
There are ways that you can keep premiums down, such as by choosing a higher deductible or a lower limit. It may also be possible to obtain a discounted rate on general liability insurance by purchasing it as part of a BOP, or Business Owners Policy, instead of as a standalone policy. A BOP combines several types of the most important forms of coverage that businesses need, such as property insurance and liability insurance, into one package at a lower price than purchasing each component individually.
Talk To The eSports Insurance Team At MFE Insurance Brokerage
The exposure to risk for everyone involved in the eSports industry is likely to rise along with the popularity of eSports. Reach out to the eSports insurance team at MFE Insurance Brokerage to learn more about how our custom policies can help ensure your eSports organization has protection from all types of risks.